Group-based differences in intra-generational earnings mobility in Israel

High earnings inequality, by itself, is less of a problem if a society is characterized by high earnings mobility rates. Using the matched 1983-1995 census file created by the Israeli Central Bureau of Statistics, which includes data for individuals who were included in both the 1983 and 1995 demographic samples of the census, this study focuses on the differential mobility rates of the various gender-ethnic groups in the Israeli labor market, as well as on the determinants of upward earnings mobility. The findings indicate that rising inequality between the dominant and subordinate groups slows down the impact of high rates of earnings mobility in Israel. Specifically, native-born Ashkenazi men (the most advantaged group) have a firm hold on the high earnings positions. Furthermore, the data show that the earnings gap between Ashkenazi men and most other groups has increased over time. Although the other groups, particularly women, also experienced some upward mobility, this mobility took place across the lower quintiles, where earnings are low.